The latest in CoreLogic’s data reveals that home-price growth rose to its highest in their 45-year history.
According to Business Insider, US home-price growth is surging. That’s good news for homeowners, bad news for homebuyers, and especially bad news for millennials. Between October 2020 and October 2021, the average price of an American home went up 18%, according to CoreLogic’s Home Price Index, which has been the definitive source for the US housing market for 45 years. That’s the biggest increase in those 45 years.
There’s reason to believe that the market will be calming down soon, CoreLogic said, highlighting that month-over-month growth slowed to 1.3%, down from its peak of 2.3% in April. This portends a more approachable market in the future for homebuyers. The data provider predicted home prices would increase 2.5% between October 2021 and October 2022 as financial concerns deterred buyers and more houses entered the market.
“New household formation, investor purchases and pandemic-related factors driving demand for the limited supply of available for-sale homes continues to propel the upward spiral of US home prices,” CoreLogic CEO Frank Martell said in a statement. “However, we expect home price growth to moderate over the near term as many buyers take a break for the holidays.”